LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC) today announced that
it intends to redeem all 4,000,000 outstanding shares of its 6.375%
Series H Cumulative Redeemable Preferred Stock (“Series H Preferred
Stock”) (CUSIP No. 49427F801). All shares of Series H Preferred Stock
will be redeemed in accordance with the applicable procedures of the
Depository Trust Company.
The redemption date will be August 15, 2017. The shares of Series H
Preferred Stock will be redeemed at a redemption price of $25.00 per
share and will not include any accrued dividends because the redemption
date is also the dividend payment date. The Company will pay the
previously announced dividend of $0.3984375 per share on the Series H
Preferred Stock on August 15, 2017. Dividends on the shares of Series H
Preferred Stock will cease to accrue on the redemption date, such shares
shall no longer be deemed outstanding and all rights of the holders of
such shares will terminate, except the right to receive payment of the
redemption price and the previously announced dividend. Trading of the
shares of Series H Preferred Stock on the New York Stock Exchange (NYSE:
KRC-PH) will cease after the redemption date.
In conjunction with the redemption of all of the Series H Preferred
Stock, the Company will incur a one-time, non-cash charge related to the
write-off of the original issuance costs of approximately $3.7 million,
or $0.04 per share, in the third quarter of 2017.
The notice of redemption was sent today to Depository Trust Company as
the sole holder of record of the shares of Series H Preferred Stock. The
Company’s transfer agent is Computershare, Inc., attention: Corporate
Actions, at 250 Royall Street, Canton, Massachusetts 02021. Questions
regarding the redemption of the shares of Series H Preferred Stock may
be directed to Computershare, Inc. at (800) 546-5141.
About Kilroy Realty Corporation. Kilroy Realty Corporation
(KRC), a publicly traded real estate investment trust and member of the
S&P MidCap 400 Index, is one of the West Coast’s premier landlords. The
company has over 70 years of experience developing, acquiring and
managing office and mixed-use real estate assets. The company provides
physical work environments that foster creativity and productivity and
serves a broad roster of dynamic, innovation-driven tenants, including
technology, entertainment, digital media and health care companies. At
March 31, 2017, the company’s stabilized portfolio totaled approximately
14.4 million square feet of office space and 200 residential units
located in the coastal regions of Los Angeles, Orange County, San Diego,
the San Francisco Bay Area and Greater Seattle. In addition, KRC had two
office projects totaling approximately 1.2 million square feet, 237
residential units and 96,000 square feet of retail space under
construction.
Forward-Looking Statements. This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are based
on our current expectations, beliefs and assumptions, and are not
guarantees of future performance. Forward-looking statements are
inherently subject to uncertainties, risks, changes in circumstances,
trends and factors that are difficult to predict, many of which are
outside of our control. Accordingly, actual performance, results and
events may vary materially from those indicated in the forward-looking
statements, and you should not rely on the forward-looking statements as
predictions of future performance, results or events. Numerous factors
could cause actual future performance, results and events to differ
materially from those indicated in the forward-looking statements,
including, among others: global market and general economic conditions
and their effect on our liquidity and financial conditions and those of
our tenants; adverse economic or real estate conditions generally, and
specifically, in the States of California and Washington; risks
associated with our investment in real estate assets, which are
illiquid, and with trends in the real estate industry; defaults on or
non-renewal of leases by tenants; any significant downturn in tenants’
businesses; our ability to release property at or above current market
rates; costs to comply with government regulations, including
environmental remediation; the availability of cash for distribution and
debt service and exposure to risk of default under debt obligations;
increases in interest rates and our ability to manage interest rate
exposure; the availability of financing on attractive terms or at all,
which may adversely impact our future interest expense and our ability
to pursue development, redevelopment and acquisition opportunities and
refinance existing debt; a decline in real estate asset valuations,
which may limit our ability to dispose of assets at attractive prices or
obtain or maintain debt financing, and which may result in write offs or
impairment charges; significant competition, which may decrease the
occupancy and rental rates of properties; potential losses that may not
be covered by insurance; the ability to successfully complete
acquisitions and dispositions on announced terms; the ability to
successfully operate acquired, developed and redeveloped properties; the
ability to successfully complete development and redevelopment projects
on schedule and within budgeted amounts; delays or refusals in obtaining
all necessary zoning, land use and other required entitlements,
governmental permits and authorizations for our development and
redevelopment properties; increases in anticipated capital expenditures,
tenant improvement and/or leasing costs; defaults on leases for land on
which some of our properties are located; adverse changes to, or
implementations of, applicable laws, regulations or legislation; risks
associated with joint venture investments, including our lack of sole
decision-making authority, our reliance on co-venturers’ financial
condition and disputes between us and our co-venturers; environmental
uncertainties and risks related to natural disasters; and our ability to
maintain our status as a REIT. These factors are not exhaustive and
additional factors could adversely affect our business and financial
performance. For a discussion of additional factors that could
materially adversely affect our business and financial performance, see
the factors included under the caption “Risk Factors” in our annual
report on Form 10-K for the year ended December 31, 2016 and our other
filings with the Securities and Exchange Commission. All forward-looking
statements are based on currently available information and speak only
as of the date on which they are made. We assume no obligation to update
any forward-looking statement made in this press release that becomes
untrue because of subsequent events, new information or otherwise,
except to the extent we are required to do so in connection with our
ongoing requirements under federal securities laws.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170712006276/en/
Kilroy Realty Corporation
Tyler H. Rose
Executive Vice
President
and Chief Financial Officer
(310) 481-8484
or
Michelle
Ngo
Senior Vice President
and Treasurer
(310) 481-8581
Source: Kilroy Realty Corporation